After a very slow market with very little conviction, I’m seeing a beautiful setup in stock markets right now. You can actually see the same pattern in the NASDAQ, but I’m going to walk you through the S&P 500 right now.
You may know that when I look at the Volume Profile, what I really like to look for — for a short — is declining volume at higher prices. And then as you move down, the volume builds and you have a sharp drop off.
Well if we look at the S&P 500, we can see this pattern on the 1 day chart. Basically over the weekend, we have this volume building up as the prices move down and then you have a very sharp drop off that takes us down about 100 points or so potentially.
And then if you look on the 5 day, you get the exact same sort of pattern. It looks even better, indicating even more downside.
Also on the 10 day chart, you see a similar pattern of lower volume at higher prices. Then as price goes down, volume rises and rises until you get a sharp drop off.
The common theme is a lack of participation at higher prices, growing volume as the price drops and then a sharp drop off.
I believe 2023 is going to be another disappointing year for equity markets.
► So for today’s free pick, I want to add to our position on SDS.
For exact trigger, target and stop loss, come subscribe to The Daily Pick right now for just $9/mo: https://ProsperityPub.com/dailypick
Why not join us and get ready for tomorrow’s pick? Subscribe to The Daily Pick right now for just $9/mo!
The Daily Pick is Don’s daily alert service, where for just a few dollars a month, he gives you a pick every trading day, complete with triggers, stop loss and profit targets.
ABOUT DON’S DAILY BRIEF:
Every market day, Don Yocham scans thousands of potential stocks, whittling down the list to just a handful that could be setting up to make BIG moves.
The top idea from his daily scan ends up here.
For specific trade instructions, including triggers and stop loss levels, take a look at The Daily Pick, where for just a few dollars a month, you’ll get full trade instructions on Don’s top idea each day.